Mistry asks shareholders to make their voices heard
Mumbai, Dec. 5: Stepping up his fight against Tatas, ousted chairman Cyrus Mistry on Monday sought government’s intervention to “remedy and repair breakdown” in the governance of trusts managing Tata Sons as well as urged shareholders to make their voices heard.
In an apparent reference to Ratan Tata, Mr Mistry also made a case for decision-making to be not concentrated in a single individual, saying conferment of all power in one man or a “high command” is unethical and a breach of trust.
Reaching out to shareholders of six Tata group firms, where promoters have called EGMs to remove him from their boards, Mr Mistry said, “The Tata Group is no one’s personal fiefdom: it does not belong to any individual, not to the trustees of Tata Trusts, not to the Tata Sons directors, and not to the directors of the operating companies. It belongs to all the stakeholders, including every one of you.”
In his letter to shareholders ahead of the EGM to remove him from the group’s crown jewel TCS on December 13, Mr Mistry questioned why no reasons were cited for his dismissal and wondered if this was another case of Ratan Tata’s arbitrary functioning.
“The impression sought to be created was that there was something unspeakable underlying his inexplicable and unreasonable conduct.
“More importantly, the signal was that Ratan Tata had an absolute right to do as he willed without having to explain himself to anyone,” Mr Mistry said. “The conferment of all decision-making power in one man or a ‘high command’ among them is unethical, improper and a breach of trust. It is critical that serious decisions of severe magnitude and consequence are not taken whimsically, without much thought, or for unstated collateral objectives,” said Mr Mistry.
Mr Mistry concluded the letter by urging shareholders to think beyond the here and now.
Tata Sons strongly and categorically refute the contents of Mr Mistry’s letter which are a rehashed version of his earlier statements, press reports and leaks